US orders DeepSeek out of federal civilian agency systems, including products built on it
A Homeland Security order bars civilian agencies from buying DeepSeek products and requires removal of DeepSeek-based tools, including third-party ones. China's foreign ministry objected.
By James Mitchell ·
For information only, not investment advice.
Federal civilian agencies are being told to stop buying DeepSeek and to remove what they already have. In a notice in the Federal Register published Oct. 20, the Department of Homeland Security said the Homeland Security Secretary had issued an order excluding the Chinese AI developer's products and services from federal civilian agency procurements. The order also removes DeepSeek and DeepSeek-affiliate products from civilian agency IT, along with "third-party products and services developed using DeepSeek implementations". It was issued under the Federal Acquisition Supply Chain Security Act of 2018, following a recommendation from the Federal Acquisition Security Council.
That last clause is the wide one. It reaches past DeepSeek's own products to third-party products built on DeepSeek. None of the sources so far say how many vendors or contracts that affects.
According to CNBC, the order was originally issued on July 24; it was published in the Federal Register on Oct. 20. CNBC reported that it applies to civilian agencies including the Treasury, State and Justice departments but excludes the Department of Defense, and that it says DeepSeek's models "present multiple threat vectors". Agencies can request exceptions, including compliance delays, within 60 days of issuance, CNBC reported.
Beijing objected. Foreign ministry spokesperson Mao Ning said at a regular briefing: "China consistently opposes overstretching the concept of national security and politicizing tech and trade issues. We will resolutely safeguard Chinese businesses’ lawful rights and interests." Xinhua, China's state news agency, reported that the remarks followed the US order.
DeepSeek did not immediately respond to CNBC's request for comment.
Sources
- Notice of order excluding DeepSeek products and services (FR Doc 2026-21447), U.S. Department of Homeland Security (Federal Register)
- U.S. bans DeepSeek from government agency systems amid AI rift with China, CNBC
- Foreign Ministry Spokesperson's Regular Press Conference, Oct. 20, 2026, Ministry of Foreign Affairs of the People's Republic of China
- Xinhua report on Mao Ning's remarks on US DeepSeek order, Xinhua (Chinese state media)
Tags: ai · china · regulation